RT Generic
T1 On the possibility of automation-induced stagnation
A1 Gasteiger,Emanuel
A1 Prettner,Klaus
WP 2017/03/16
AB We analyze the long-run growth effects of automation in the standard overlapping generations framework. We show that, in contrast to other neoclassical models of capital accumulation, automation does not promote growth but induces economic stagnation. The reason is that automation suppresses wages, which are the only source of investment in the overlapping generations framework.
K1 Automation
K1 Stagnation
PP Hohenheim
PB Kommunikations-, Informations- und Medienzentrum der Universität Hohenheim
UL http://opus.uni-hohenheim.de/volltexte/2017/1338